Answered: Multiple choice 1. ABC Co. completes…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Multiple choice 1. ABC Co. completes the draft of its December 31, 20x1 year-end financial statements on January 31, 20x2. On March 1, 20x2. the management of ABC Co. authorizes the financial statements for issue its supervisory board. The supervisory board is made up solely of non-executives and includes representatives of employees and other outside interests. The supervisory board approves the financial statements on March 10, 20x2. The financial statements are made available to shareholders and others on March 14, 20x2. The shareholders approve the financial statements at their annual meeting on March 23, 20x2 and the financial statements are then filed with a regulatory body on April 1, 20x2. For purposes of PAS 10, what is the date of authorization of the financial statements? a. March 1, 20x2 b. March 10, 20x2 c. March 14, 20x2 d. March 23, 20x2 2. According to PAS 10, these are events that provide evidence of conditions that existed at the end of the reporting period. a. Events after the reporting period b. Non-adjusting events c. Adjusting events d. all of these 3. Which of the following events after the reporting period are treated as adjusting events? a. A significant decline in the fair value of investments in stocks. b. A litigation arising from an accident that occurred after the reporting period. c. Declaration of dividends after the reporting period. d. Discovery prior-period fraud or errors. 4. Entity A's inventories on December 31, 20x1 have a cost of P100,000 and a net realizable value of P80,000. Shortly after December 31, 20x1, but before the financial statements were authorized for issue, the inventories were sold for a net sale proceeds of P70,000. The correct valuation of Entity A's inventories in the December 31, 20x1 financial statements is a. 100,000 b. 80,000 c. 70,000 d. any of these 5. According to PAS 10, non-adjusting events after the reporting period a. require adjustments of amounts in the financial statements. b. do not require adjustments of amounts statements, but are disclosed in the notes. the financial c. do not require adjustments of amounts in the financial statements, but are disclosed in the notes if they are material. d. are ignored.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions